This is one of the properties that Axiare Patrimonio has in its pipeline, as was announced on the 15 November last. This acquisition was finalised in a transaction outside of the market.
The historic building, renovated for offices, comprises 7,054 square metres Gross Letting Area (GLA) and 93 parking spaces, situated in the influential area of Calle Almagro, in Madrid.
Luis López de Herrera-Oria, Managing Director of de Axiare Patrimonio, explains that, in relation to this purchase, “this unique building, located in la Plaza de Alonso Martínez, fulfils all our premises: it is a prime product, it is located in the financial centre of the capital and it has great potential for the creation of added value”. This property is similar to the case of the Alphabet Building in Finsbury Square in London, a historic building with important interior modernization, which has managed to attract various prestige clients, paying the highest rents in the area of influence.
So far this year, Axiare Patrimonio informs us that they have signed 24 contracts covering a GLA of more than de 100,000 square metres. This trend continues positively, and will add a further 11,000 square metres for rent, with a firm offer to close the deal.
The company possesses 67 million euros for projects for the betterment and repositioning of assets, with the aim of creating the biggest buildings in each submarket. This has been demonstrated in its other assets, such as, for example, the building at 7, Manuel de Falla, of which the renovation has recently been completed, which has added an increase of 37% to the value of the property, which went from 31 to 42.6 million euros.
SOCIMI now owns about 1,100 million euros in real estate assets. Their prediction for rent increases is for 77% for the next year and a half, from 42 million euros per annum to 76 million predicted for 2018.
Similarly, Axiare Patrimonio has 200 million euros exclusively for close new purchases.
In this transaction, Axiare Patrimonio has been advised on the legal side by EY, PWC on the technical side and Cushman & Wakefield on the commercial side. The sale has been assisted by Tenigla Real Estate and Aiga Investments.